Annual Report 2015 Semcon • Annual Report 2015 Semcon Semcon AB • 417 80 Gothenburg, Sweden • Visiting address: Lindholmsallén 2 Phone +46 (0)31 721 00 00 • semcon.com THIS IS SEMCON AROUND 3,000 EMPLOYEES GLOBAL REACH page 37 page 14 OFFER ENGINEERING SERVICES PRODUCT INFORMATION page 26 page 32 FOCUS INDUSTRIES AUTOMOTIVE INDUSTRY ENERGY LIFE SCIENCE page 22 page 22 page 23 page 23 CONTENTS 4 The year in brief 24 Offer 84 Corporate governance report 6 CEO’s comments 26 Engineering services 90 The Board 10 Objectives and strategies 32 Product information 92 Group management and 13 Business models 37 Employees other executive management 14 Global reach and 40 Sustainability 94 Five-year summary history 44 Financial reports 95 Shareholder service 16 Markets and trends 80 Definitions and glossary 22 Focus industries 82 Semcon’s shares cover: michael holmudden, design engineer. read more about VirDa on page 27. 3 Creating the future With passion for user-friendliness and technology we develop our customers’ products and businesses. We contribute to a positive future through our breadth of knowledge, determination and exciting innovations. Semcon is an international technology consultancy company in the field of engineering services and product information. We have around 3,000 highly skilled employees who constantly challenge one another to find even better solutions and clearer competitive benefits for our customers. We do this by developing products, processes and product information. Follow us into the future. 4 the year in brief 2015: The year in brief 2015 was a year of challenges for Semcon. The measures the full effect. The Product Information business area taken had a major negative impact on results, but are reported a drop in sales towards year-end due to less necessary for Semcon to remain competitive over the long- business in the UK and China. term. The restructuring work carried out at Engineering A number of partnership agreements were signed with Services Germany, to adapt the organisation to the current global customers over the year. Semcon also increased market situation, meant major costs, amounting to ownership in the Norwegian company Devotek. Semcon’s SEK 46 million. The realignment to a more sales-oriented largest business area, Engineering Services Nordic, began to organisation will probably take more time before realising see the effect of working with value-based total solutions. income (sek) number of employees income outside sweden 2.6 2,936 53 billion people per cent Operating income: SEK 2,557 m (2,726) EPS after dilution: SEK 0.20 (4.16) Operating profit: SEK 10 m (102) Equity/assets ratio: 45% (48) Operating margin: 0.4% (3.8) Return on equity: 1% (12) Profit after tax: SEK 3 m (75) The Board proposes a dividend of SEK 1.25 (2.50) per share 2015 Q1 Q2 Q3 Q4 Operating income SEK 677 m (704) SEK 632 m (679) SEK 611 m (612) SEK 637 m (731) Organic growth –6% –8% –2% –12% Operating profit SEK 34 m (41) SEK –29 m (3) SEK 13 m (32) SEK –9 m (27) Operating margin 5.1% (5.9) –4.5% (0.4) 2.2% (5.2) –1.5% (3.6) Number of employees 2,935 3,042 2,886 3,032 2,864 3,050 2,936 2,990 at end of period ( ) ( ) ( ) ( ) the year in brief 5 Important events during the year Q 1 Q4 Semcon moved to a new head office in Lindholmen, Semcon strengthened its presence in Norway by which is Gothenburg’s hub for developmental technology extending its shareholding in technology company companies. Kongsberg Devotek AS to 97 per cent to further focus on strategic expansion on the Norwegian market. Q2 Semcon signed a new global framework agreement with Semcon signed a development contract with a European Atlas Copco in November, with Semcon appointed as a premium automotive manufacturer at the end of April. Preferred Supplier. The agreement includes a number of More than 70 of Semcon’s engineers will at most be different areas of expertise in research and development. involved in the development project, which will be carried The new agreement covers more areas of expertise than out at Semcon’s offices in Germany, Sweden, the UK and previously, giving Semcon the opportunity of taking on India. The project is expected to run for approximately 18 more responsibility in future development projects. months and includes interior development for two new Semcon was appointed as Preferred Supplier for car models. Project Management by Vattenfall Projects & Services Semcon appointed Per Nilsson as Corporate in December. This means an extended collaboration communications and marketing director in May. Per between Semcon and Vattenfall. Semcon has already joins Semcon from Volvo Trucks where he was Global PR developed Vattenfall’s project model, based on Semcon’s Director. He started work in mid-August and is a member XLPM methodology. The collaboration will mainly include of the Group management team energy production for Vattenfall, where Semcon is already designated as an A-supplier. Q3 Semcon signed a new agreement in December for Semcon appointed Udo Glenewinkel as its new President autonomous vehicle systems with a global automotive of business area Engineering Services Germany in partner. The assignment is mainly based in Brazil as September. Udo joins Semcon from NGA Human part of Semcon’s global strategy to involve cutting Resources where he was CEO for the operations in DACH edge expertise in high-tech development projects from (Germany, Austria, Switzerland) and Eastern Europe. He different countries. The new agreement will initially started work on 1 November and is a member of the employ 15 specialists from Semcon in Brazil and Europe Group management team. who will be working on a joint development project in close collaboration with the customer. ¢ Key figures 2015 2014 2013 2012 2011 Operating income (SEK m) 2,557 2,726 2,508 2,571 2,452 Operating profit (SEK m) 10 102 125 193 111 Operating margin (%) 0.4 3.8 5.0 7.5 4.5 Equity/assets ratio (%) 45.2 48.4 48.5 46.6 38.4 Debt/equity ratio (times) 0.1 – – 0.1 0.5 Return on equity (%) 0.5 11.6 14.6 27.7 17.3 Cash flow per share (SEK) 1.51 4.54 7.45 10.28 4.84 Dividend per share (SEK) 1.25* 2.50 2.50 2.00 – EPS after dilution (SEK) 0.20 4.16 4.86 7.80 3.83 Share price at year-end (SEK) 42.40 49.40 60.50 48.00 24.00 Number of employees at year-end 2,936 2,990 3,001 3,000 2,894 *Board’s proposal 6 ceo’s comments CEO’S COMMENTS “The challenges we faced in 2015 were bigger than expected – but Semcon is well positioned for the future” We find ourselves in challenging and exciting times. with an operating margin of 0.4 per cent, compared with 3.8 We took a number of measures in 2015 to improve our per cent in 2014. competitive edge and position ourselves for the future. This is partly an effect of the major program of measures These measures negatively affected results but were introduced throughout the Group over the year, both in the necessary for ensuring growth and form of cost-cutting and proactive improved profitability. Following investments for strengthening our a tough year we head into 2016 NEW MEASURES competitive edge. with a modern, global organisation To gear-up and meet these challenges with efficient processes and we have introduced a program of Tough year for the German innovative employees. We are measures that’s expected to pay off engineering business seeing an increasingly high demand over the next few years. The major restructuring carried out for development services and in Germany over the year to create that technical developments are a more sales-oriented organisation, advancing in a fascinating way. Products are becoming which was also adapted to German legislation to promote increasingly connected, more climate-aware and user- project deliveries, resulted in restructuring costs of SEK friendlier. Our working methods are often both virtual and 46 million. We are now ready to meet the large ongoing global, in line with more customers collaborating with development requirements, mainly in the automotive us on a strategic level surrounding their product design, industry, and our strategy is completely in line with the product development and product information. In this new market situation in Germany. Customers can benefit change process Semcon has a strong position through our from Semcon’s offer of package solutions, something that extensive offer and capacity to handle major projects in also leads to more customer dialogue on a strategic level. global teams. With a new German management in place there is also now the incentive to promote developments towards REFLECTING ON THE PAST YEAR successively improved results. Investing for the future negatively affected results for 2015 Positive trend for engineering services in the Nordics The past year was not as expected and results are far behind Semcon’s biggest business area, Engineering Services our objectives. Sales in 2015 amounted to SEK 2,557 million Nordic, has developed its offer, which is now clearer and ceo’s comments 7 “Our strategy for a greater share of project deliveries is starting to pay off.” Markus Granlund, President and CEO more customer-oriented, which began paying off in we find one of Semcon’s biggest strengths – the ability to 2015. We saw greater demand, mainly in the automotive work flexibly between countries and produce the highest and life science industries, while activity was more quality. We are seeing greater demand in this area and subdued amongst companies in the energy sector and major potential for the years to come.
Details
-
File Typepdf
-
Upload Time-
-
Content LanguagesEnglish
-
Upload UserAnonymous/Not logged-in
-
File Pages96 Page
-
File Size-